2 Contingency Approach or Situational Approach Stages of Leadership Theory & ResearchTrait Approachdominant until late 1940s - assumes leaders born, not madeStyle Approachheld sway until late 1960s - effects of leadership on those ledContingency Approach or Situational Approachpopular to 1980s - situational factors are focus for understanding leadershipNew Leadership Approachsince 1980s, leader defines organizational reality through articulation of a visionWe can think of developing notions of leadership in the way it is written and talking about as occurring in different stages of development in a time line.Post-charismatic & Post-transformationalemerged late 1990s, distributed leadership, cooperative community-ship & spiritualitySource: Parry, K.W. & Bryman, A. (2006) Leadership in organizations, In S.R. Clegg, C. Hardy, T.B. Lawrence & W.R. Nord. Handbook of organizational studies (2nd ed), Sage.
3 Orientation All Leader- focussed still Examine 'maps and models' of New LeadershipTransformational and transactional leadershipCharismatic Leadership and the uniqueness of the special leaderDilemma of the ego- driven transformational leaderShift of focus to Level 5 or upper-level leadership (post-charismatic)All Leader- focussed still
4 James McGregor Burns (1978) on Empowerment Burns is pioneer of new andtransformational leadershipTransforming nature of a leadership act understood through unexpected and individualistic action of individualLeadership roles exist in web of relationships which offer insights into how values impact on leadershipInitiating acts trigger value-laden reactions by individuals acting out their rolesOriginated from his work on political leaders - got transformational and transactional from this.James MacGregor Burns (1978) first introduced the concept of transforming leadership in his descriptive research on political leaders, but this term is now used in organizational psychology as well. According to Burns, transforming leadership is a process in which "leaders and followers help each other to advance to a higher level of morale and motivation". Burns related to the difficulty in differentiation between management and leadership and claimed that the differences are in characteristics and behaviors. He established two concepts: "transforming leadership" and "transactional leadership". According to Burns, the transforming approach creates significant change in the life of people and organizations. It redesigns perceptions and values, and changes expectations and aspirations of employees. Unlike in the transactional approach, it is not based on a "give and take" relationship, but on the leader's personality, traits and ability to make a change through example, articulation of an energizing vision and challenging goals. Transforming leaders are idealized in the sense that they are a moral exemplar of working towards the benefit of the team, organization and/or community. Burns theorized that transforming and transactional leadership were mutually exclusive styles. Transactional leaders usually do not strive for cultural change in the organization but they work in the existing culture while transformational leaders can try to change organizational culture.(WIKIPEDIA)Burns, J.M. (1978) Leadership, New York: Harper & Row
5 The New Leadership Approach Transformational leadership (Bass, 1985)Charismatic leadership (Conger, 1989)Visionary leadership (Westley & Mintzberg, 1989)Leader revealed as someone who defines organizational reality through the articulation of a vision which is a reflection of how they define the organization’s mission and the values which support it.Depict leaders as mangers of meaning rather than in terms of an influence processThe New Leadership Approach - key characteristicsBass, B.M. (1985) Leadership and performance beyond expectations, New York: Free Press.Conger, J.A. (1989) The charismatic leader: Behind the mystique of exceptional leadership. San Francisco, CA, US: Jossey-BassWestley, F. & Mintzberg, H. (1989) VISIONARY LEADERSHIP AND STRATEGIC MANAGEMENT. Strategic Management Journal 10, SPECIAL ISSUE, pg. 17
6 Transactional & Transformational Leadership Leadership theories have emphasized leadership as an exchange processTransactional leadership: leader identifies with what followers want or prefer & helps them achieve level of performance that results in rewards that satisfy themTransformational leadership: leader has ability to inspire and motivate followers to achieve results greater than originally planned and for internal rewardsTransactional leaders see their relationships with followers in terms of trade, swaps or bargains.Transformational leaders are charismatic individuals who inspire and motivate others to perform beyond contract.Sometimes commentators associated transformational with management and transformational with leadership.
7 4i’s: Transformational Factors Idealized influenceAct as role models, attract admiration, respect & trust, put needs of others before personal interests, take risks & demonstrate high standards of ethical conductInspirational motivationMotivate & inspire others by providing meaning & challenge, arouse team spirit, show enthusiasm & optimism, communicate expectations, demonstrate commitmentIntellectual stimulationQuestion assumptions, reframe problems, approach old issues in new ways, encourage innovation & creativity, avoid public criticism of mistakesIndividualized considerationAttend to individual needs for growth & achievement, act as coach or mentor, create new learning opportunities, accept individual differences, avoid close monitoringBass and Avolio claim that transformational leadership occurs when leaders use these 4 I'sIdealized influence: articulate the mission or version of the organizationInspirational motivation: motivate others to put organizational interests before self-interestIntellectual stimulation: stimulate others to see what they are doing from new perspectivesIdealized consideration: develop others to higher levels of ability(from Huc and Buc2007: 718)From: Bass & Avolio (1994) Improving organisational effectiveness through transformational leadership. Thousand Oaks, CA: Sage
8 Yukl (1999) Tips for transformational leadership Develop a challenging and attractive vision, together with the employees.Tie the vision to a strategy for its achievement.Develop the vision, specify and translate it to actions.Express confidence, decisiveness and optimism about the vision and its implementation.Realize the vision through small planned steps and small successes in the path for its full implementation.Yukl, G. (1999) An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. Leadership Quarterly, ISSN , 08/1999, Volume 10, Issue 2, p. 285
9 Research findingsBass’s model examined using Multifactor leadership Questionnaire (MLQ) (see Alimo-Metcalfe & Alimo-Metcalfe)Two similar and differentiable leadership styles?Idealisation of leaderInspirational content of leader’s words or visionTogether a measure of charismatic leadership styleProvides an expanded picture of leadership that includes the exchange of rewards & leader’s attention to growth of followersPlaces a strong emphasis on followers’ needs, values, and morals - motivated to transcend self-interests for good of teamBest leaders are both transformational and transactionalWhen researching transformational and transactional leadership the most frequently used survey is called "the Multifactor Leadership Questionnaire" (MLQ Form 5X). This is a questionnaire that measures each of the components of the full range of leadership, initially starting with Bass' (1985) factors and analysis. The original scales in the questionnaire are based on a initial factor analysis and earlier versions.Earlier research on transformational leadership was limited, because the knowledge in this area was too primitive for finding good examples for the items in the questionnaire. Another weakness in the first version of the MLQ related to the wording of items. Most items in the scale of charismatic leadership described the result of leadership, instead of specific actions of the leader that can be observed and that, in turn, lead to the results. In response to the critics, Bass and Avolio (1990) included in the revised and now subsequent versions many more items that describe leadership actions that are observed directly. They also split out attributions of leadership associated with Idealized Influence and behaviors and actions into two separate scales.The current version of the MLQ Form 5X includes 36 items that are broken down into 9 scales with 4 items measuring each scale. Subsequent validation work by John Antonakis and his colleagues provided strong evidence supporting the validity and reliability of the MLQ5X. Indeed, Antonakis et al. (2003) confirmed the viability of the proposed nine-factor model MLQ model, using two very large samples (Study 1: N=3368; Study 2: N=6525). Although other researchers have still been critical of the MLQ model, since 2003 none has been able to provide dis-confirming evidence of the theorized nine-factor model with such large sample sizes at those published by Antonakis et al. (2003).
10 Mean difference among men and women managers in MLQ scores when rated by subordinates 0.3188.8.131.52Leadership ScaleTransformationalIdealized influenceInspirational motivationIntellectual stimulationIndividualized considerationTransactionalOutcomesContingent rewardManagement –by-exception (active)Management –by-exception (passive)Laissez-faire0.180.080.300.330.250.42Extra effortEffectivenessSatisfactionMaleFemaleWomen managers judged more effective & satisfying to work for & more likely to generate extra effort from their people.Women rated higher than men on 4 I’s of transformational leadership – significantly on idealized influence, inspirational & individually considerateMen rated higher in management by exception & laissez-faire leadershipProfile emerges of women manager who is seen as a more proactive role model by followers, who is trusted & respected and shows greater concern for her followersExplanations are numerous for these findings, but plausible explanation may lie in tendencies of women to be more nurturing, interested in others and socially sensitiveAbility of women to accept their vulnerability while men more likely to react with anger when confronted by their weaknessesEthical issues – moral reasoning, women focus on care & responsibility & men on rights & justiceBass, BM and Avolio, BJ (1994) SHATTER THE GLASS CEILING - WOMEN MAY MAKE BETTER MANAGERS. Human Resource Management . Vol 33 (4) pp
11 The additive effect of transformational leadership Idealized influenceIndividualized considerationInspirational motivationIntellectual stimulation+++TRANSACTIONAL LEADERSHIPManagement by exceptionPERFROMANCE BEYOND EXPECTATIONSEXPECTED OUTCOMESTransformational leadership has intuitive appealTreats leadership as a process that occurs between followers & leaders - leadership emerges from interplay between leaders & followersSome e.g. Bass state that the best way to get high performance is to use an appropriate mix of Transformational and Transactional in an additive manner+Contingent rewardAdapted from: Bass, B.M. (1990) Bass & Stogdill's Handbook of leadership: theory, research and managerial applications, 3rd ed., New York: Free Press.
12 Leadership Based On Charismatic Grounds The term ‘charisma’ will be applied to a certain quality of individual personality by virtue of which s/he is considered extraordinary and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities. These are such as not to be accessible to the ordinary person, but are regarded as of divine origin or as exemplary, and on the basis of them the individual concerned is treated as a ‘leader’.M. Weber (1968) Economy and Society, 1, p. 247
13 Stages in Charismatic Leadership (Conger & Kanungo 1988)""FREEDOM!""stage onestage twostage threestage fourdetectingunexploitedopportunities& deficienciesin the presentsituationsensitivity toconstituent’sneedsformulating anidealizedstrategic visioncommunicatingthe visionarticulating thestatus quo asunacceptable& the vision asthe mostattractivealternativearticulatingmotivation tolead followersbuilding trustthroughtechnicalexpertise,personal risk-taking, self-sacrifice andunconventionalbehaviourdemonstratingthe means toachieve thevision throughrole modelling,empowermentandunconventionaltacticsCan play clip if have enough timeTalk through modelConger, J.A. and Kanungo, R.N. (1988) Charismatic leadership: the elusive factor in organizational effectiveness. Jossey-Bass
14 Charismatic Leadership: A Relationship Between Leaders & Followers Characteristics of Charismatic LeadersHigh degree of self confidenceStrong conviction about ideasHigh energy & enthusiasmExpressiveness & excellent communication skillsActive image building & role modellingCharacteristics of Followers of Charismatic LeadersHigh degree of respect & esteem for the leaderLoyalty & devotion to the leaderAffection for the leaderHigh performance expectationsUnquestioning obedienceNahavandi's work shows the importance of the relationship between leaders and followers and identifies the conditions through which this is possibleGo though slide….Elements of Charismatic SituationsAvailability of dramatic symbolsOpportunity to clearly articulatefollowers’ role in managing the crisisSense of actual or imminent crisisPerceived need for changeOpportunity to articulate ideological goalNahavandi, A. (2000) The Art & Science of Leadership. Prentice-Hall
15 Conger (1990) The Dark Side of Leadership (ego-led and narcissistic leadership) Conger warns of dangers associated with high-profile leadership practicesLooks at leaders first hailed as exemplary & later as misguided or morally suspectLeader’s distort vision to meet egocentric ambitionsLeader develops sense of invulnerability & belief in ‘rightness’ of their visionFailure of charismatic leader due to:Commitment to vision – shift to single-minded obsessivenessAuthentic communication – with vision as extension of leader’s personality needs communication is less authenticStyle of charismatic leader – exclusion and stereo-typingConger's work points to negative role models e.g. Adolf Hitler in terms of charismatic leadership and draws our attention to the importance of being able to challenge the leader.SLIDE….Conger, J.A. (1990) The dark side of leadership. Organizational Dynamics, ISSN , 1990, Volume 19, Issue 2, pp
16 'Heroic' Leaders A Danger? Theory & research emphasizes the primary importance of a single, heroic leaderCharismatic, transformational leadership – effect leader influences followers to make self-sacrifices and exert exceptional effortInfluence is uni-directional – flows from leader to followers – success due to efforts of leaderHeroic leader expected to be wiser and more courageous than subordinates, and to know everything that is happeningLeaders seldom live up to expectationsShared responsibility for leadership functions & empowerment = more effective than heroic leadership (Bradford & Cohen, 1984)Shared responsibility unlikely to occur as long as people expect individual leader to take full responsibility for fate of organizationSome issues with the heroic leadership model….SLIDE…
17 Beyond the heroic new leader “What catapults a company from merely good to truly great? A five-year research project searched for the answer to that question, and its discoveries ought to change the way we think about leadership”" The most powerfully transformative executives possesses a paradoxical mixture of personal humility and professional will. They are timid and ferocious. Shy and fearless. They are rare - and unstoppable."Collins, 2001Jim Collins work on Good to Great leaders shows READ SLIDE….Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January , 65-76
18 Jim Collins on the Fifth Level Leader "Beyond Charisma" Collins examined features of exceptional companiesFrom 1400 companies eleven chosen as showing sustained excellenceStrongest differentiating factor of these companies termed ‘level five leadership’YinHumility & ShynesscharacteristicsShunning publicityActing with quiet, calm determinationAmbitious for the company, rather than selfAccept full responsibility for failureGive credit to othersDevelop successorsYangWilfulness & FearlessnessUnwavering resolve regardless of difficultiesUnwillingness to settle for anything but the best(Collins 2001)SLIDE….Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January , 65-76
19 The Level 5 Hierarchy Level 5 Level 4 Level 3 Level 2 Level 1 LEVEL 5 EXECUTIVEExecutive builds great companies through exercise of personal humility and wilfulnessEFFECTIVE LEADEREffective leader, promoting commitment to compelling vision & high performance standardsCOMPETENT MANAGERCompetent manager, effectively organizes towards predetermined goalsCollins represents Level 5 leadership as a pyramid whereby a leader can move up the levels as they develop (OR NOT!) and ultimately achieve effective performacne at LEVEL 5SLIDE…CONTRIBUTING TEAM MEMBERLeadership as collaborative team effortsHIGHLY CAPABLE INDIVIDUALIndividual‘s talent, knowledge, & skills are key contributionCollins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January , 65-76
20 SummaryCharismatic / Transformational leadership contrasted with economic exchange models of transactional leadershipExposes mechanisms through which leaders manage changeBass presents leaders as having range of leadership style – transformational modes an addition to transactional onesEncourages leadership development at all organizational levelsAssociation of new leadership with follower empowerment helps understand dark side of leadership and egocentric behaviours of some leadersChallenging dilemmas examined help broaden understanding of leadership excellenceCollins' work suggests transformative leaders need not be heroic/overtly charismatic but possess humility and will.SLIDE…
21 Summary cont. A move away from trait, style and behavioural models Leadership seen as a socially constructed processRevived interest in leader’s personal characteristicsRole of leadership traits:Key traits are not enough to make a leader - they are a precondition for effective leadershipExperience, correct choices and exposure to right situations are also key to allow talents to develop
22 "The New Transformational Superleader" The TheoryThe new transformational superleadertraitmust have the right personality, appearance, attributes, voice etc.stylemust be caring, inspirational and visionary, ethical, risk taker etc.contextualstyle is consistently with a hostile and rapidly changing environment, with the need to develop flexible organisational forms, to motivate knowledge workers and develop a learning organisationThe charismatic business leader continues to hold swayThe charismatic story, briefly, holds that great changes are achieved by exceptional peopleMore careful studies beginning to reveal that the story is at best partialOur image of the exceptional leader shown to ignore contributions of people with characteristics of styles & behaviours that are the mirror image of the ‘charismatic’SLIDE….Huczynski & Buchanan (2007) Organisational Behaviour. 6th ed. Harlow : Financial Times Prentice Hall
23 Key reading and resources READING FOR SEMINARYukl, G. (1999) An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. Leadership Quarterly, ISSN , 08/1999, Volume 10, Issue 2, p. 285KEY TEXTSNorthouse (2012) Chapter 9Jackson and Parry (2011) Chapter 2OTHERSBass, BM and Avolio, BJ (1994) SHATTER THE GLASS CEILING - WOMEN MAY MAKE BETTER MANAGERS. Human Resource Management . Vol 33 (4) ppConger, J.A. (1990) The Dark Side of Leadership. Organizational Dynamics Vol19(2): p.44Collins, J (2001) Level 5 Leadership: the triumph of humility and fierce resolve. Harvard Business Review, January , 65-76